German Company Formation

Germany is a big contributor in Europe, having the greatest population, economy, and market. Germany’s strong economy is not only the biggest in Europe, but the third largest globally. An established infrastructure and vast market aids this economic strength and fuels the country’s purchasing power parity. The country is strongly involved in EU agreements and single market legislation, and many of its domestic policies follow this. As a result Germany is heavily focused on exports, with a third of the country’s activity being exports.

Foreign investors are welcomed in Germany and are not restricted to certain types of business investment or company set up. Investors should be aware of EU legislation but are able to buy into local companies without restriction.

Universal Company Incorporations has the expertise in German company formation to establish a professional corporate structure reflective of your core business. Our team will maximise your long term growth and profitability prospects to make your expansion into Germany both sustainable and successful.

Company Set Up Options

There are a number of options for foreign investors to choose when setting up a company in Germany.

  • A Limited Liability Corporation (GmbH) is the most popular type of company with a simple structure
  • Stock Corporation (AG) is the standard corporate form for major public companies
  • Sole Proprietor is the simplest form of business entity with fewest regulations.

Whatever your business plans for setting up in Germany, there is a company for you. Universal Company Incorporations can help you find the right business entity and advise financial solutions to help with your tax planning and ensure accurate liability. Our team has breadth and depth of experience in German company formation and are multi lingual. We will work with you to form a stable foundation on which to build and develop your business in the German market.

Regulatory Environment

The German authorities strictly regulate the business environment in the country. Stock Corporations (AG) in particular must comply with stringent regulations, although all types of company must adhere to the various aspects of German company law. The government oversees and regulates the activity of financial institutions such as banks and insurance offices. Other business industries are moderated by specialised associations which regulate their members’ activity and propose standard forms of practice. It is essential to comply with the relevant authority and avoid penalties and charges when operating a company in Germany, as this may restrict your business operations or affect your business brand.

Local legal advice will help you achieve this. Universal Company Incorporations have a network of lawyers and accountants in our German office to provide the support you require. We will provide a local point of contact to give you a proactive approach to the German regulatory system and help you focus on your core business.

Banking Facilities and Financial Incentives

Germany’s economic strength is matched by its world-class banking facilities. All the major international banks are represented in the country, providing a huge breadth of service. Opening a local German bank account is the first step when setting up a company and there is a range of financial solutions to suit any business.

The government offers a number of incentive programmes to encourage and aid foreign investment in the country. Loans and grants are available for certain types of company and in certain locations within Germany. Some SMEs can take advantage of capital investment grants of up to 50%, and outside of the larger cities, local governments offer tax rate reductions.

Universal Company Incorporations has the expertise and knowledge to help clients secure the available initiatives implemented by the German government. We are experienced in dealing with German banks and the bureaucracy involved in setting up a local bank account. Our support will ensure that you are making the most of Germany’s advantageous business environment and operating in the most cost effective way.

Staff Recruitment

There is no shortage of qualified staff in Germany, which prides itself on the quality of its technical training. Apprenticeships in the industrial sector are also widely available. Unemployment is particularly high in eastern Germany and the Ruhr region, so recruiting staff is further encouraged there. For general job advertisements, using the local government-run employment exchange is the usual method for finding local staff, but for higher quality and specialist staff, or senior management positions, working with an executive search agency is advised to bring you a better class of workers.

Universal Company Incorporations works with a local recruitment expert in Germany to ensure that you receive the best advice, enabling you to make better-informed business decisions. The staff employed in your Germany business will be instrumental in your expansion plans and so recruiting the right people to drive the business forward is paramount. We understand your needs and will comprehensively address them to ensure that your German company is focused on your core business.

Contact us

Universal Company Incorporations is always on hand to guide you through all of the stages of forming a new enterprise or expanding an existing company in multiple countries. Please don’t hesitate to call us on +44 (0) 20 8421 7480 or contact us via the website for help and advice.